Notices

Financial products held in a defined contribution (DC) retirement pension account will soon be transferable to an individual retirement pension (IRP) account at another financial institution without having to sell the underlying assets.

The Financial Supervisory Service (FSS) announced the plan on August 24 at the first meeting of the Task Force for Improving In-Kind Transfers of Retirement Pensions, held at the FSS conference room.

Currently, in-kind transfers of retirement pension accounts are permitted only within the same type of retirement pension plan?that is, from one DC plan to another DC plan, from one defined benefit (DB) plan to another DB plan, or from one IRP to another IRP. There are also restrictions, such as limitations on in-kind transfers of accounts containing funds for which redemptions have been suspended.

Another inconvenience is the requirement to make an audio recording to confirm the account holder’s intention to transfer. The recording procedure may delay the transfer process, and complaints have arisen because account holders are not provided with specific reasons when a transfer request is cancelled or rejected.

To address these issues, the FSS has launched the Task Force for Improving In-Kind Transfers of Retirement Pensions, which includes the Korea Securities Depository, associations representing banks, financial investment companies, life insurers, non-life insurers, and savings banks, as well as Korea Securities Finance Corporation and major retirement pension service providers.

As a first step, the task force plans to develop an IT system that will allow assets held in a DC retirement pension plan to be transferred in kind to an IRP account managed by another provider. It will also discuss whether funds subject to suspended redemptions can be included among the financial products eligible for transfer.

The task force will also consider introducing secure non-face-to-face methods, in addition to audio recording, to verify an account holder’s intention to transfer. Procedures will also be improved so that account holders are provided with specific reasons whenever an in-kind transfer request is cancelled or rejected.

The task force plans to finalize the direction of these improvements by September 2026 and begin developing the necessary IT systems in October 2026.

Use of the retirement pension in-kind transfer service has been increasing rapidly. Since the service was introduced on October 31, 2024, approximately 250,000 transfers totaling KRW 15.9 trillion had been completed as of the end of June 2026. This represents an average daily transfer volume of approximately KRW 26.1 billion.

During the first half of 2026, the amount transferred reached KRW 6.9 trillion, more than double the KRW 3.2 trillion recorded during the first half of the previous year. Transfers from banks to securities firms accounted for the largest portion, totaling KRW 5.2 trillion, or 33% of the total, followed by transfers between banks at KRW 4.5 trillion, or 28%.

By Kim Hak-tae August 24, 2026, 16:37 tae@labortoday.co.kr

Source: Maeil Labor News (Korea Labor Daily)